EUR/USD moves above 1.1300 because the Salvo Roils markets markets

EUR/USD will drop to 1.1296 after Trump announces a steep tariff for EU imports from June 1.
The couple are reflected to 1.1350, when the US dollar remains pressure, growing fears regarding the fiscal deficit.
The euro moves his arms from the EBC rate, supported by improving German GDP data.

EUR/USD Recovered during the session in the middle of North America on Friday after diving below 1,1300 after US President Donald Trump rattled markets, threatening to apply 50% tariffs to the European Union (EU). At the time of writing, the couple recovered and climbed around 1,1350

US President Donald Trump published in his social network on early Friday that discussions from the European Union “are not going anywhere! That’s why I recommend a simple 50% tariff to the European Union, starting from June 1, 2025” – he wrote. EUR/USD fell to 1.1296 in remarks before resuming up.

According to these remarks, the Secretary of the US Treasury Scott Bessent said that “EU proposals were not of good quality”, adding that “most countries are negotiating in good faith, except for the EU.”

Greenback remains on the back foot, charged by the approval of Trump’s tax account in the House of Representatives, which is on the way to the Senate. According to the Office (CBO) budget congress, the proposal would add nearly $ 4 trillion to the US debt ceiling within a decade.

It is worth noting that the American dollar remains unreactive for the speakers of the Federal Reserve (FED), who until now found that the US tax market is ordered, adding uncertainty as to the supply chains, supplies and inflation, is not aware of the future.

. US Economic Docket In May, it contained housing data in the USA, which was mixed up as building permits decreased, but in April the fresh sale of houses improved.

IN Euro zoneThe German gross domestic product (GDP) improved every year, although it remained on the systolic territory.

In the meantime, euro he shrugged to speculate that European Central Bank (EBC) is to reduce interest rates at the upcoming meeting. Rehn and Stournaras ECB favor the reduction of the rate in June, and the latter support the pause after this meeting.

Daily Market Market Daily EUR/USD: Euro favored by the “Sell America” trend

The euro remains favored by the overall weakness of the American dollar. The American dollar index (DXY), which tracks the performance of six currencies in relation to the American dollar, dropped by 0.79% to 99.10, its lowest level from April 29.
The “Sell America” trend continues, and investors sell bonds, American shares and American dollar. This was lit by the “trade war” of US President Donald Trump and reduction of the US government’s debt from AAA to AAA.
The US schedule contained building permits, which fell by 4% in April, falling from 1.481 million to 1.422 million, which signaled the slowdown in future building activities.
According to the American population list, the fresh sales of houses increased by 10.9% of my mother, increased from 0.67 million to 0.743 million. It reflects powerful demand on the housing market despite the closer supply of supply.
The German economy increased in the first quarter of 2025, craving estimates due to exports and industry front against US tariffs. Gross domestic product (GDP) has improved from 0.2% to 0.4% QOQ.

Technical perspectives EUR/USD: In the near future questioning 1,1400

The increased augment in EUR/USD was resumed on Friday, with the couple reaching the highest level of 1.1375 for two weeks, because traders are preparing for a challenge of 1,1400. Buyers are gathering when the couple have registered the highest high and low in the last five days, and then confirm the relative strength rate (RSI), which is trending before the purchase.

If EUR/USD cleans 1,1400, it would pave the way to test key resistance levels, such as 1.1450, and then a distinction of 1.1500 and year on year (YTD) at 1.1573.

And vice versa, if the EUR/USD drops below 1,1300, the pair can test the lowest level of May 22, of 1.1255, before 1.1200.

EBC FAQ

The European Central Bank (EBC) in Frankfurt, Germany is a bank reserve bank. EBC establishes interest rates and manages monetary policy for the region. The basic mandate of the ECB is to maintain price stability, which means maintaining inflation at about 2%. Its main tool to achieve this is to augment or reduce interest rates. Relatively high interest rates usually cause a stronger euro and vice versa. The ECB Managing Council makes decisions regarding monetary policy at meetings taking place eight times a year. Decisions are made by the heads of national banks of the euro area and six lasting members, including the President of EBC, Christine Lagarde.

In extreme situations, the European Central Bank may protect the political tool called quantitative fox. QE is a process in which ECB prints the euro and uses them to buy assets – usually government or corporate bonds – from banks and other financial institutions. QE usually causes a weaker euro. QE is a last resort when just lowering interest rates is unlikely to achieve the goal of price stability. EBC used it during the great financial crisis in 2009–2011, in 2015, when inflation remained stubborn low, as well as during Covid pandemic.

Quantitative tightening (QT) is the reverse of QE. This is undertaken after QE when economic recovery is underway and inflation begins to grow. While in QE, the European Central Bank (EBC) buys government and corporate bonds from financial institutions to ensure them liquidity, in QT EBC it stops buying more bonds and stops reinvesting the main maturation in the bonds it already has. It is usually positive (or stubborn) for the euro.